Newgen KnowledgeWorks buys majority stake in Exult Infosolutions

Acquisition to help the Carlyle Group-backed Newgen enter the space of e-learning and mobility

Newgen KnowledgeWorks, a Chennai-based publishing and technical service provider to global publishers, has acquired 70 per cent stake in Pune's Exult Infosolutions, a company engaged in digital learning solutions, mobility and cloud-based software applications, for an undisclosed amount.

The acquisition is expected to help the Carlyle Group-backed Newgen to enter the space of e-learning and mobility across multiple new markets.

Newgen is a provider of publishing and technical services for books and journals, such as content sourcing, content creation, project management, author liaison, development editing, copyediting, design, artwork and permissions, mobile app distribution and discoverability solutions, among others. It has production centers in India, UK and US and caters to US, UK and European markets.

 

Exult has over eight years of experience in consulting and outsourcing services and helps global businesses, including Fortune 1000 companies, to achieve training goals by providing customised learning solutions, software application development, mobility solutions, and UI/UX design.

Prabhakar Ram, founder and CEO of Newgen said, "We have emerged as a preferred service provider to the $2 billion publishing outsourcing industry. Together with the e-Learning industry, incidentally also valued at $2 billion, these businesses offer fantastic growth opportunities to both Newgen and Exult to cross-sell products and services in each other's markets."

The acquisition would help it to offer the entire range of products and services - from traditional publishing to digital services and products across mobility and Augmented Virtual Reality platforms, he added.

Exult Founders Sandeep Khomne and Saurabh Pangarkar said, "In Newgen, we have identified the perfect partner who brings in immense strategic value to us in the form of global outreach, larger customer portfolio, and service expansion opportunities. We are excited to be a part of Newgen and look forward to the journey ahead."

Newgen, in which private equity major Carlyle Group LLP has invested around $32.8 million in December 2014 to hold around 54 per cent shares, has diversified into financial publishing, digital marketing and complex publishing solutions through its subsidiaries.